tv Glenn Beck FOX News October 28, 2009 5:00pm-6:00pm EDT
he won't tell you. i just did. that's fair and balanced. good night. [captioning made possible by fox news channel] captioned by the national captioning institute ---www.ncicap.org---^ bret: welcome to the glenn beck program, and also, can we think outside of the box, and oh, do you have a better healthcare plan, better than obama? yes, as a matter of fact i do and i would like to announce it tonight. if you believe this country is great but our sense of entitlement is killing us, stand up and come on, follow me. hello, america. we have talked about a lot of spooky things on this program and i think a lot of these
things are wrong and i think we need to think out of the box. we are in the age of the unthinkable. yesterday i asked does it matter? does it matter if it's true or not? does it matter that these people are marxists? does it matter that the guy who is rebuilding our automotive industry has no experience has no automotive experience, 31-year-old brian dees, and he slept in his car in a g.m. parking lot, that's about t does it matter that the manufacturing czar has said it's nonsense and he is not alone in his love of redistributing wealth. >> we get the joke. we know that the free market is nonsense. >> i think when you spread the wealth around, it's good. >> give them the wealth! give them the wealth! >> mao tse-tung and mother
teresa, the two people i turn to most. glenn: does that matter? we have marxists and radicals seiving in the administration, and advising the president of the united states. does it matter? well, yes, it does, if you believe that what makes america america is not the government, but the individual dreamers, the builders, the doers, not the collective, but the individuals, the dreamers and the inventors. the inventors that brought us moving pictures. it was in this country. how about the assembly line, the light lightbulb, the elevator, and the dare i say it, the chia pet! those are the individuals that made us great -- well, maybe we can leave off the chia pet people but that's a different story. that's being stifled. now the government will tell you what that chia pet should look like, and what to do with it after you create it.
they will control everything, control your education, have you build beautiful cars like that. they're going to control your health. they'll control what you watch on television. they'll control everything now, because they own a lot of the banks, and many and more and more of the companies. so now does the inventor have to invent the things that the people want, but what the government says it's looking for. they will also make sure you can't go out on your own and try to create something better. if they don't like, it it is total and complete control. america, it is also total insanity. now, i've told you on this program before about cloward and piven. it is a 1960's strategy that actually taught people the best way to stop the republic, the best way to stop america, the best way to subvert the constitution and replace it with communism, marxism, socialism, whatever, is to financially collapse it, not
to fight in the streets but financially fight. well, just a year ago, i will tell you that this stuff sounded absolutely crazy, and there are nights i lay in bed and say this cannot be true. this can't be true. how can these people -- well, it is. these people are now the ruling class. we have worried about the debt, you and i have worried about it for years, even under george bush. it wasn't sustainable. that was one of the big things about george w. bush, hello! stop spending money, but tonight, i not only want to show you how bad the debt is, but i also want to show it to you because i think if you're armed with information, look, you're neither stupid, nor are you panicky. you just need somebody to tell you the truth and tell you what to do about it. well, i can't tell you what to do about it exactly, but i can tell you the truth, at least the truth, as i understand it, and then if you have that truth, if you have that information, if a crisis comes, you're not going to
accept their answer because you will understand what the problem s you won't accept the solution that i think is coming, and what is coming is a system that doesn't really look a lot like america as you know it, because this system is unsustainable for the way the people in washington have built it. it is a system that is going to financially collapse at some point, a system quite honestly that looks a lot like what just happened in iceland. in iceland, they just released this and it got my attention. all three of their mcdonald's have been forced to close in iceland that. may not sound like a national emergency to you, but then again, neither does the swine flu, and the reason they shut down the mcdonald's in iceland is the currency. it's called the chrona. it has been devalued to the point where franchise owners could no longer import the packaging, the meat or the cheese to run a mcdonald's. just four years ago, iceland was booming.
everybody looked at it and said this is a great economy, this is a great country! it was growing at 5% and boasting the first islander to make the forbes' wealthiest list. in october of last year, a year ago, iceland's stocks dropped 77% in a single day. they went from being in a position to where they were importing workers from poland to a 10% unemployment rate like that. massive debt, coupled with currency and banking chris cease has caused iceland's once thriving economy to hit the skids. now, their g.d.p. is around $20 billion, and their foreign debt alone was $120 billion, six times their g.d.p. is that like hot apple pie in ache vick? in rake vick? if it was just about the big mac, it wouldn't be a problem, but our g.d.p. now what we
make in the country is $15 trillion. our actual debt, as you have seen many times on this show^ , show it here, is $105 trillion. this is our national debt, but the actual debt is $105 trillion, 7 times our g.d.p. and now i want to make this clear. ours is the actual debt. what happened in iceland is their foreign debt, apples and oranges, i understand that, but did you just see the number that i just showed you? it said $11 trillion, and that's the games we play. our government is playing accounting games right now. do you realize we have four separate accounting books? yeah, you try that with the i.r.s.! we have accounting processes, not according to me, but according to david walker, former comptroller, independent comptroller of the united states of america that left in disgust because nobody would pay attention anymore. he said that it would put everybody involved in jail if
the people doing it didn't also col the prison systems. liberal blogs are having fun at my expense about saying that i think we get more truth right now from pravda than the american press, and it's true. i stand by it. if only because they have perspective. they're not so close to it. they don't have the oh, well, we're america, we'll never have these hard times! they have gone through it. let me give you a quote that i found in pravda just last week. it can be safely said that the last time a great nation destroyed itself through its own hubris and economic folly was the early soviet union, though in the late soviet union, it still died by the economic hand. we now get the opportunity to watch the americans do the same exact same thing to themselves. the most amazing thing, of course, is that they're just repeating the failed mistakes of the past. boy, are we ever. remember, the soviet union
didn't collapse. it was transformed overnight. transformed. look it up. it's important to understand possibly our future. now, how is all of this happening? well, let me first explain before i get to where i think they're going to take us, let me explain how this works. a year ago, we had the problem with the banks, because people took out too many bad loans. i know this is a little chinese that goes in the opposite direction, but call me chinese today. i mean, they practically own us anyway. here is where we start. here is the home that you and i could afford. ok. one car, little house. maybe we could afford that, but this is the home and the car that we couldn't afford that we were promised by the people in washington that you could. don't worry, you can have it all. you can have this house. why live in this crappy house, you should live here with two of these cars, wouldn't that be great? well, who told us that? these people and the acorn people. they pressured banks to make loans to people who could not afford them, and then the
whole thing melted down, because the bank said to these people, no, no, these people cannot afford this home. these people just so they can get your vote and you into this home, they pressured the banks and said you know what? then if you're going to do that, you're not going to be able to expand. we're going to picket you, we're going to smear you every step of the way, and that's what they did, and so, the banks loaned money to these people to buy this home. again, because of special interests and politics. a year ago, this system melted down. the banks said we can't do it. they said you have to. well, it melted down, so we had tarp coming in, and what tarp was we went to the treasury and we borrowed and we printed more money. we just gave the banks enough money so they had, when this person actually loses their home, they're going to be able to cover it here at the bank. that's what tarp was about.
we borrowed as much as we could. the rest, are we have to print. ahhh. printing money, didn't we learn from the vimar republic that printing money is a bad thing, because doesn't that lead to massive inflation? well, wait a minute, glenn. we don't have an inflation problem right now. you're right. you're right. we don't. why? come over here. let me show you something. first of all, let me show you, this is a chart of our money supply. this is starting back at the turn of the century, and you see that our money supply was petty good, until the 1980's and 1990's, and then, whoa! lehman brothers spikes up, and we're just printing money like crazy. well, then, why do we have inflation? two reasons. one, it usually takes about two years before inflation kicks up. when you do, that when inflation kicks up, it takes about two years to kick into the system. where is the money? inflation is too many dollars
chasing too few goods. there is too many dollars. all right. where is it? show me the next chart, please. this is our monetary base. this is our big printing. this is excess reserves. this is the bank. whoa! look! the banks -- have you ever heard anybody say the banks aren't loaning the money! that's a good thing! the banks are holding the money because we ain't through this yet. they're holding the money. when the banks start to loan this money, that's what bankers call velocity. it is taking this money and pushing it out, velocity. that's what's missing right now. there is zero velocity on these dollars, so they're sitting there. now, let me give you some perspective. back in the 1970's under jimmy carter, remember we printed money? we had inflation. we added too much money. we add added a whopping 13% more money to our money supply. we printed 13% for two years. do you remember how bad things were?
we started down a socialist utopia with jimmy carter, oh, we can have everything. to stop it, what did we do? the fed chairman, paul volcker came in and in an effort to suck all the money back to the fed and out of the system, we had to raise interest rates. remember, are the banks have all of this money. this is why interest rates go up, because once there's velocity and this goes out into the system, it's inflation, so they have to do something to get this money back down here so the fed can take it out and destroy it. how do they do that? they charge you more to borrow money. you go in and borrow $100 at 20% interest, you will pay them $20 extra. those $20 extra that you pay to the bank actually go to the federal reserve where they destroy t that's sucking the money back in. well, after printing 13% more money for two years in the 1970's, we had runaway inflation of 12%. that's a lot here in the united states, so volcker had to raise the interest rate to
pull that 13% back. do you remember when what he raised that interest rate up to? he raised that interest rate up to 20%. now, let me ask you this, america -- 20%. 20% interest rate. oh, that was to bring in 13% increased money supply. do you have any idea how much we have increased the money supply? 120%. let me ask you this -- in the last year or so, 120%. how high will our interest rate have to be to pull all of this money back down here? how do you do that without completely shutting down the entire economy? can you afford a house with a
30-year interest of 35 or 40%? how about a car payment with 2 5%, 30% interest? can you do it? how many business loans will be taken out with 25% interest rates? in a fragile economy, you can't do it. 40%, 30%, i don't know an economist that will actually give you a number, because it's crazy town! but i will tell you this, it will be over 20%. so how do you do it? because every day it won't stop. how do you keep an economy based on buying, not on building, on buying? you can't. you got to borrow money. well, what if people won't lend you money? this is the real reason that kiss dodd wanted to cap credit card interest rates today. they must have your credit cards working. they must have you spending! so what do you do? how do you get out of this system? because you're going to have inflation. how do you do it? how? well to pay off the $105
trillion government debt, and to take care of this whole mess and clean it up, here's what i think they're doing. look at the debt clock once again. they're only saying almost $12 trillion at the top, but the whole number is about $343,000 per citizen. there's no way to pay that off, so conjecture on my part, how about we just print enough money to pay off the debt over time. sure, i mean, it will be worthless, but we will be able to honor our agreement. we will be able to give the chinese their money back and the rest of our debtors. that way, the people that we owed would get their money and if we sold some stuff to them, well, they can come and take those assets, but then what's left? because, see, there's got to be somebody who has thought this through. how do you restart the country? you got to have something left. you have to have something to back the currency -- gold,
gold would be a good one, huh? there $200 trillion in investable assets in the world. there are only $800 billion in gold. that's why we went off the gold system in the first place. we need more money. there is not enough gold. well, you can't go back to the gold standard for very long, and you need something to buy stuff with, and you can't barter forever, what are you going to do? well, if you have to have money, and you got to base it on something, so let's go back in history and look at the people and what they taught in last centuries when there is out-of-control money supply problems, who do you turn to? well, the people who did it last time, the vimar republic in germany. what did they do? how did they get their economy back on their feet? well, after their currency had become so worthless that they had printed $2 trillion marc bank notes they dumped it and their economy collapsed. then they switched to the
renton marc what. did they back it up with -- not enough gold. the answer is right here. the answer is right here. they backed it with real estate, land. that's what they did in germany, and there's certainly enough land and resources in america that we could back our currency with. i mean, the government, though, would have to own all of the land -- oh, my gosh, i just thought of something, between fannie and freddie, the government already owns half of all of some of of the u. mortgages and they're about to buy more. if you couple that with federal land and the grab for parks that they're doing now and did you hear the polar bears are too crowded and endangered so they just gave 200 square miles up there in alaska and all the oil that we're not driving for and coal we're not mining, gosh, i bet you could base a new currency off of that. i bet china could come and help, because you probably wouldn't be happy with a system like that taking all
the land because that's one of our real rights we had in our constitution. look, america, i'm hoping that i'm wrong about this. but i can't figure out anything else. i have never seen anything else in history done. i mean, what happens? who is the new regime responsible for this new system of currency? who do they have on their side? who is the federal government after they have destroyed our future and your children's future, who would they have on your side, because you'll say -- because i would -- don't worry about it, we will fix it together, me, bob down the street, we will barter for a while, get back on our feet and fix it. let the free market fix it, but we have already seen those in government don't believe in the free market. they don't even believe in you. you're too stupid. they say let the government fimpleg it. let the world fix it. there's a better idea. let the world fix it. they're already saying these things now. and when you watch friday's show on global warming, you will see how they are laying
the groundwork for this. don't fool yourself. read american history. read any history. both the american revolution and american civil war, we needed al highs, people who would fight -- we needed allies, people who would fight and supply money. don't you think china would be willing to come over here and protect this government, help this government out from its own radical people who just won't sit down and recognize the new reality? under these circumstances for a piece of our oil, coal, mineral reserves, land, to be a part of one big happy global family, you bet they will! so, it boils down to this. what if the dollar collapses in the next three, five, eight years, is there anybody thinking of a plan, because i would like to hear another plan. this is the only one i can come up with. historically speaking it is the only one i can find, too. is there anybody making a plan? does it matter? let me ask specifically, with git gitmo being closed and
glenn: well, we have a lot of things to do. on tomorrow's radio program, cash for clunkers. there is a new study out that for every car that was bought, it looks like it cost you $24,000. we'll get into that. also, governor pawlenti is going to be with me on the radio program. apparently i said the other day he was for cap and trade. his p.r. people called and said his position is much more nuanced than that. i'll try to get to the bottom of that one with governor pawlenti tomorrow on the radio program "coast to coast" check it out at glennbeck.com to find a station near you. who doesn't love a kid who says "gee, i love to vote!"
ok, in washington state, 17-year-olds who will turn 18 by the next election are allowed to register. apparently the state has mistakenly allowed 16 and 17-year-olds also to register. how many? a study by the evergreen freedom foundation that fights for individual liberty, an organization actually that i love, they found over an 8-year period, there were 16,000 underaged registrations and more than 100 under age 18 who voted. the vets sued asking the state to implement a system to keep out the minors since it is against the law. they came up with a a complex system like checking i.d.'s and a calendar. it is kind of a rigorous system. i don't understand it. bouncers and bartenders have been using it for a while, but i'm a recovering alcoholic, so i have been out of the loop for a while. a judge, though, has ruled that the secretary's procedures are adequate, and
didn't result in a huge number of illegal votes over 100 years, it seems like no big deal, even though it's the law, but when it comes to the integrity of our election system, what do you say you team with me and one illegal vote is one too many. there is much more on this story. michael rice, attorney for the evergreen freedom foundation is here. what part of the story am i missing? >> nothing, glenn. this is a huge problem. we think it has a simple solution, as you said, just check the calendar, check i.d.'s and make sure that people who won't be eligible to vote by the next election aren't getting a registration filled out and entered into the system. glenn: you are vaying a calendar should be checked, along with some i.d. when they register.
is that complex to work that out? >> very complex procedure, yes. we have actually talked about this quite a bit and have recommended that a secretary of state and the county auditors even notify the young people when they become eligible. take their information, send them a voter edge administration card after the fact once they become eligible, but anytime you take an ineligible application and enter it into the voter data base, you introduce inaccuracy into the system, and as you said, any inaccuracies can result in inaccurate votes and that affects the outcome of an election. glenn: so here's my -- i mean, well, a, my big problem is it's illegal. just do it the right way. the second problem is the judge, is it true that the judge said we can't do this, because if we start doing -- if we start asking for i.d. or calendars and start matching things, it is going to disenfranchise the youth of washington state and then they may never vote?
is that true? >> that was the state's -- that's true. that was the state's argument all along. one of them was that if we turn away 17-year-olds before they're eligible to vote, that could affect their willingness to participate in their civic process and we want and arms-open wide policy to encourage them to to vote. glenn: no, we don't. >> absolutely, we do. glenn: no, we don't. if you're not willing to play by the rules. if you think you're so damn entitled -- excuse me language -- if you think you're so entitled to a vote, that, look, hey, i'm here, ok, i'm not going to be eligible, but i'm here, so sign me up, otherwise i'm never going to vote, then you shouldn't vote. if you can't do it the right way, why am i bending over backwards for you? do it the right way. >> and this is not a situation that young people today are unfamiliar with. at all levels of growing up,
everyone is familiar with reaching certain ages of eligibility, whether it is driving, drinking, smoking, all these things have some eligibility age built into it, and we think that young people today can probably understand the concept that you're not eligible to vote right now, but come back and sometime in the near future and we'll be happy to have you participate at that point. glenn: all right. thank you very much. i appreciate t i'm telling you, america, we entitled to everything now. you entitled to everything but the truth or a different opinion. well, i'm going to give you the truth and a different opinion, next. i'm going to give you an actual solution to the healthcare problem that you're not going to hear anyplace else, no. they'll never do it, but they should, next.
glenn: hello, america. i'm working on something that will drive them absolutely out of their mind in a few minutes, and i'll give it to you in 60 seconds. first, here is patti ann. >> i'm pat patti ann browne. the healthcare bill is about to be formalized by democrats. speaker nancy pelosi is expected to introduce the bill tomorrow morning, with a government-run insurance option. president obama signed a $680 billion defense policy bill into law. the bill kills some costly weapons projects but also expands war efforts. the legislation also includes a new law that designates a tax on gay people as a hate
crime. nasa says today's test flight of the new aries rocket is a big success, the first step in nasa's back to the moon program. bret baier now previews "special report." >> coming up, white house officials respond to allegations that the democratic national committee traded white house perks and access for contributions and we'll take you to pakistan where a massive car bomb killed more than 10o join me at the top of the hour. now back to glenn. glenn: i'm just drawing guard dogs. that's all i want. there is a new wall street journal/nbc news poll that shows americans, despite all those jobs that obama has created or saved, are growing increasingly pessimistic about the economy and the direction
we're headed. 58% said the economy will continue to get worse. yep. the poll also found the republicans are seeking a ratings spike because of it. they're not going to get it, and they're not getting credit. that's the good news. people know that electing somebody from the other party is not going to fix the party. hey, the game is over! look, the government didn't invent the lightbulb. the government didn't create the assembly line or i-pods or airplanes or jeans or satellites or slot machines although they may have had something to do with slot machines. you did. you invented them. i'm glad more and more people starting to realize that. they are the problem, not the solution. arthur brooks, president of the american enterprise institute is here. you know, arthur, i want to talk to you about the believers and the non-believers. the non-believers are the people that believe the only thing that can be fixed is through government, the government, democrats and the republicans, the special interests are, and then
there's the believers, the people how out there in the real world, you, the ones who actually need a guard dog watching the non-believers. i'm watching these new races that are happening and arthur, i can't -- the parties don't want to let the believers in. >> yeah, and the thing is that the believers, as you call them, the folks that actually think that the free market system is best for the american economy are 70% of americans. only 20% actually believe or disagree with the idea that the free market is best for america, despite even severe ups and downs in the american economy. glenn: wait a minute. say that number again. how many people in america believe in the free market system? >> the pew center, the pew research center asked in march, which is the darkest moment in america's worst recession in 50 years, do you agree that the free market system is best for the american economy despite severe ups and downs? the pew research center is non-partisan.
70% agreed. 20% disagreed and 10% didn't know. the believers are a huge group, sirtely everybody. glenn: so help me out. let me go back up the chalkboard. the believers are the guard dogs, just get government out of my way because we'll fix it. however, i think what the democrats and the republicans and the special interests, what they have done is taken us from a guard dog -- i mean, especially with the youth. what they've done is they have stuck their big hand out there with a treat. we've gone from a society where the dog was free to roam and do what he wants and we've gone to giving a treat to people if they behave or punishment if they don't. for instance, we don't let the system punish itself. now what happens is if you don't smoke, there's a little treat, come on, who's not going to smoke? who's not going to go poopy on the floor? you're not going to.
sit down, sit, sit, sit and you can have a treat, right? >> yeah. the government is doing that, but there is a huge game changer in how we see the free enterprise system momentarily was the idea that the whole american economy was melting down, you know, when somebody has got a gun to your head, which apparently the american economy appeared to to americans, they will be a abrogate their values so americans said sure, hope and change. the president was giving us bailouts and the new guy now thinks he can do it better and and they handed the election to him. the paradox is that people are less and less favorable towards the economic policies of the current administration even as the economy is starting to improve. the even for that is that americans starting to regain their traditional values in feedom, opportunity and entrepreneurship and what they see when they get on a slightly surer footing economically is they don't like what is going on with respect for the culture of free enterprise in this
country. glenn: do you think that is bred into us? i don't think that can be broken, as long as we don't lose the kids, which i know they're trying to do. >> i hope it is bred into us. i certainly hope it is, but the thing is, look, if 20% of the population disagrees with the idea that the free market is the best way to organize our economy, the folks that have that view are going to have to expand that part of american culture. how do you do it? there are a lot of ways. one way is to exempt more and more people from any sort of skin in the game, any federal income tax liability, which is exactly what's going on in this country. about 2/3's of americans believe that everybody should pay some federal taxes so that they have some similar involvement in the system, and now what we're find something that about in january of 2011, at least 49% of americans will pay zero taxes. i mean, pretty soon you will get to a tipping point in this country and that is going to change our culture. glenn: i have to tell you, i lost the last 40 seconds of what you were saying. you could have been talking
glenn: we have asked you if you still believe in the free market system and a poll says 70% of americans say yes. a poll says that but the president says healthcare will just add more competition. yeah. yeah. they also complain that the opponents don't have a better solution. man, does it stink to be you today, because i have a competitive solution! yes. since you love competition and the free market so, so very much, mr. president, here's my plan, free, to you. it is going to add some competition. mr. president, imagine that you're out on a golf course, and you're a c.e.o. of a company, and i know that's a stretch for you because you're not really a company president. you're just an organize organizing a really important community or something like, that and the company is not doing well. you're playing your usual mourning round of golf while
people are drying in the middle east and you get a call on the blackberry thaw insisted on having, but it is so important that you don't know who is calling you but one of your employees, definitely an se i u member says he's got it, he can turn the company around. now, it's super expensive and super risky, but if it works, it might just save the company. if not, well, the company is going to go out of business and die a horrible ugly fiery death, but that's only one problem. i mean, it just could go out of business, but other than that, it's perfect, and the fact that only 35% of people in the board room want to go ahead with the plan. the only reason it is 35% is because it will transform your company into something it was never meant to be. what to do, what to do? i have to hit the ball, avoid a decision, and then come up with a decision later. well, a good c.e.o. might suggest -- my idea -- trying
this plan on one of the weakest of the, let's say, 50, or in your case, 57 entities. seeing how it might work -- if it fails, you only lose one and not the whole business, see f it works, great, you start spreading it around, like the wealth, or the bull. see what i'm saying. so i'm saying that is what the president should do. if i may, i have a map. this is what we do with the healthcare plan. we take a weak state, oh, there's so many to choose from, oh, california or massachusetts? i think we go with massachusetts, which is one of these crappy states right up here. i'm not sure which one. now, they take this healthcare plan that they say is going to change everything, fund fundamentally trance transform everything, sun sunshine and lollipops. they deserve it, because they have done it with barney frank this whole time. don't you think we can give it
to them first? it can't get worse, right? the whole romney-care thing, already, the state is on fire. well, they're being dismantled by another government-run plan, so let's try this one, because in massachusetts, premiums are growing much faster than the rest of the nation. wait. wait. the situation is so dire that they are now starting to cut back services -- that's called rationing -- and they even have group doctor visits. let's put obama's healthcare plan to work in this state right here, because here's the good news. we don't need it for the whole country, because the way it is written right now, it doesn't start until 2013, surprisingly the year after the president is re-elected to a second term, so it will give us something to do in the meantime. we can watch it work, and then make plans to spread it all across the country or we can watch it fail. now, at the same time that massachusetts attempts yet another government program
that will fail, let's try something addically different, oh, yes, my friends! let's try something different, something radically different than the plan for obama in another state. where would they understand freedom -- oh, yeah, here in this small state called texas t is based on something old fashioned called a free market. innovation is encouraged in this state. government would be completely hands off here and out of the way. with the ideas. private industry would have the competition. open up the state, no federal laws there, all insurance companies, no matter where, the best plan could come in and try to sell it to people here. it's so crazy! it just might work! then again, it may fail, but if it does, what do liberals care? it's texas. they hate it anyway. so, i say we suggest a little competition that the president
loves so much, yes, open the doors to competition, but instead of detrying the whole country on -- instead of destroying the whole country on a plan that i'm sure could never fail, we try it in massachusetts, that is in trouble, and try it in texas where they understand the free market, and may the best plan win! although, i do have a hunch that the plan in texas might actually work out a little better, because see, they have already tried something like this. yeah, yeah. you know the government system has $60 billion a year in fraud in medicare and in texas they have seen when towns or counties opt out of government systems, like three texas counties did with social security. oh, man! oh, wouldn't you like to see those results? oh, i have them! i'll go get them, next!
glenn: so now i just told you the problem, government-run healthcare and the solution. rick tranto is the head of the crazy social security plan in texas, risky scheme, seems to me, galveston county, texas. hi, sir. >> how are you this afternoon? glenn: good. you came up with this idea back in the '08's, right? >> yes, sir. glenn: and the risky scheme was let people opt out of social security and come into a privately-run what do you call it, retirement plan? >> yes,. glenn: how insolvent is that right now? >> it's very solvent. the funds are protected by the insurance companies that they're being held by, and audited and regulated by 50 insurance regulators throughout 50 states in the u.s.
glenn: no, no, no, but the government is running one that is much better and it is wildly insolvent. hang on just a second. if you made $17,000 a year in social security, you get $683 back, but in your plan, you get over $1,00o how about $75000 a year, you get $4,500 back every month and social security is only $1,645. again, theres in a lockbox. yours is insolvent, right? >> no, it is not insolvent. inin fact, the reason they got into the program in the first place was a desire to take personal ownership of their account versus being in social security, which is a promise to pay if it's there, and depending on what benefits they decide to give in any given year. glenn: how many members of congress or anybody in government come down to study this and say, whoa, this sounds like a really good idea? how many people have come down from washington to study this? >> the g.a.a. has sent people
down in the late '80's, early '90's, and social security has done a study on this and we testified to the house congressional financial committee a couple of times as well, so they are fully aware of this program. glenn: but they're not going to -- they're going to stick with their program? >> you know, it's -- i think that this issue of privatization versus public option that you're talking about is really more of a political issue rather than an economic issue. glenn: whoa, whoa! crazy man on t.v. now, hang on just a second. let me explain something. when somebody takes money from a group of people and they take that money and instead of investing it, they take it and they pay the old investors, that's called a ponzi scheme. that is exactly what bernie madoff went to jail for and those in washington are not going to jail for. forget i said anything. we'll be back in just a